Monolithic Power Systems (NASDAQ:MPWR) Trading Up 7.4% - Here's What Happened

Key Points

• Monolithic Power Systems (NASDAQ:MPWR) rose 7.4% in midday trading, reaching as high as $1,382 after the company’s latest earnings and analyst commentary boosted sentiment.
• The semiconductor maker recently posted strong quarterly results, with EPS of $5.10 beating estimates and revenue of $804.19 million topping expectations, while sales rose 26.1% year over year.
• Analyst views remain constructive overall, with a Moderate Buy consensus and an average price target of $1,599.17, though insiders have also been selling shares in recent months.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) rose 7.4% during mid-day trading on Tuesday . The stock traded as high as $1,382.00 and last traded at $1,386.3070. 152,701 shares changed hands during trading, a decline of 79% from the average session volume of 714,279 shares. The stock had previously closed at $1,291.38.

Analyst Ratings Changes

Several equities research analysts have weighed in on MPWR shares. Truist Financial set a $1,805.00 target price on Monolithic Power Systems in a research note on Friday, May 1st. Zacks Research raised Monolithic Power Systems from a "hold" rating to a "strong-buy" rating in a report on Thursday, June 18th. Weiss Ratings upgraded Monolithic Power Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, June 12th. Raymond James Financial reaffirmed an "outperform" rating and issued a $1,800.00 price objective on shares of Monolithic Power Systems in a research note on Friday, May 1st. Finally, Rosenblatt Securities lifted their target price on Monolithic Power Systems from $1,000.00 to $1,575.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Monolithic Power Systems currently has an average rating of "Moderate Buy" and an average price target of $1,599.17.

Monolithic Power Systems Price Performance

The business's 50-day simple moving average is $1,507.56 and its two-hundred day simple moving average is $1,277.68. The stock has a market cap of $68.22 billion, a price-to-earnings ratio of 99.89, a price-to-earnings-growth ratio of 2.42 and a beta of 1.71.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The semiconductor company reported $5.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.90 by $0.20. Monolithic Power Systems had a net margin of 22.84% and a return on equity of 19.58%. The company had revenue of $804.19 million during the quarter, compared to the consensus estimate of $781.93 million. During the same period in the prior year, the business earned $4.04 earnings per share. The company's revenue for the quarter was up 26.1% compared to the same quarter last year. Equities research analysts forecast that Monolithic Power Systems, Inc. will post 20.13 earnings per share for the current year.

Monolithic Power Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Tuesday, June 30th. Monolithic Power Systems's dividend payout ratio is presently 57.68%.

Insider Transactions at Monolithic Power Systems

In related news, EVP Deming Xiao sold 30,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $1,654.55, for a total value of $49,636,500.00. Following the completion of the transaction, the executive vice president owned 205,959 shares in the company, valued at $340,769,463.45. This trade represents a 12.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Maurice Sciammas sold 12,000 shares of the business's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $1,561.40, for a total transaction of $18,736,800.00. Following the sale, the executive vice president directly owned 166,644 shares in the company, valued at $260,197,941.60. The trade was a 6.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 69,370 shares of company stock valued at $112,702,503. 3.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Monolithic Power Systems

Institutional investors have recently modified their holdings of the business. Generali Investments Management Co LLC raised its position in Monolithic Power Systems by 60.4% during the 2nd quarter. Generali Investments Management Co LLC now owns 916 shares of the semiconductor company's stock worth $1,266,000 after purchasing an additional 345 shares during the last quarter. Handelsbanken Fonder AB grew its position in shares of Monolithic Power Systems by 3.1% in the 2nd quarter. Handelsbanken Fonder AB now owns 32,416 shares of the semiconductor company's stock valued at $44,811,000 after buying an additional 983 shares during the last quarter. First Bank & Trust grew its position in shares of Monolithic Power Systems by 8.4% in the 2nd quarter. First Bank & Trust now owns 245 shares of the semiconductor company's stock valued at $339,000 after buying an additional 19 shares during the last quarter. Tactive Advisors LLC acquired a new stake in shares of Monolithic Power Systems in the second quarter valued at about $218,000. Finally, Everhart Financial Group Inc. acquired a new stake in shares of Monolithic Power Systems in the second quarter valued at about $216,000. Institutional investors own 93.46% of the company's stock.

Monolithic Power Systems Company Profile

Monolithic Power Systems NASDAQ: MPWR is a fabless semiconductor company that designs and supplies high-performance power management solutions for a broad range of electronic systems. Founded in 1997 and headquartered in Kirkland, Washington, the company focuses on analog and mixed-signal integrated circuits that convert, regulate and monitor electrical power with an emphasis on efficiency, integration and power density.

MPS's product portfolio includes DC‑DC switching regulators, power modules, power management ICs (PMICs), LED drivers, battery-management ICs, motor drivers, and AC‑DC power solutions.

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